2. What is strategic Management?
•A process that involves
carrying out decisions and
actions to develop an
appropriate strategy
(means) to achieve an
organization's objectives.
3. • Process whereby managers
establish an organization's long
term direction, set objectives,
develop strategies to achieve
these objectives in light of the
internal and external
circumstances, and undertake to
execute the chosen action plans
4. •Determination of the basic
long term goals and
objectives of an
organization, and adoption
of courses of action and
allocation of resources
necessary to carry out
these goals
5. Characteristics of strategic management
• It is a process
• Futuristic and long term orientation
• An integrated and comprehensive
approach
• Focus on strategy as a central theme
• Focuses on creating competitive
superiority
• Top management point of view
• Prioritizing resource allocation
6. History of Strategic Management
• From art of war
• From the Greek word ‘strategeia’ meaning the art or
science of being the general
• Originally known as the grand plan which included
the strategic plan and the implementation plan of
acting on those plans
• The grand strategy approach was later adopted into
business in form of business strategy which is
embedded in strategic management
7. Cont-
• From the mass production era of the industrial
revolution in light of the 1st
and 2nd
world war which
destroyed what was in place lead to more concern
for long term survival hence need for strategic
planning and strategy implementation
• The two main reasons for the ever increasing need
for strategic management are1) the ever changing
business environment & 2) the rapid increase in size
and complexity of companies.
8. The strategic Management Framework
• Defining the business of the firm /
enterprise
• Setting objectives & performance
targets
• Formulating strategies
• Implementing the selected strategy
• Evaluation and control
9. The Strategic Planning Process
• This is the process of revising the existence of
the enterprise (mission statement), setting
the long-term goals and objectives in view of
your environment, formulating the best
strategy of getting where you want to be.
• It does not include the strategy
implementation phase(1/2 way the battle of
outwitting your rivals)
10. The Strategic Planning Process
• This is the process of revising the existence of
the enterprise (mission statement), setting
the long-term goals and objectives in view of
your environment, formulating the best
strategy of getting where you want to be.
• It does not include the strategy
implementation phase(1/2 way the battle of
outwitting your rivals)
